Oireachtas Joint and Select Committees

Wednesday, 8 November 2017

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance Bill 2017: Committee Stage (Resumed)

10:00 am

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

This amendment addresses vacancy, which is a policy area acknowledged by the Government as being central to housing challenges. In response, a key objective, identified in the fifth pillar of the Government's action plan on housing and homelessness, Rebuilding Ireland, is to ensure that existing housing stock is used to the optimum degree and it focuses on measures to use existing vacant stock to renew urban and rural areas and meet housing needs. While building new homes is a key action, another effective way to meet our housing needs is to bring vacant and under-utilised properties back into full use. Vacant properties are an important source of potential accommodation supply as they are typically already served by existing infrastructure. Their reuse has the potential to reduce the number of additional new homes required and to renew both the urban and rural areas of which they form an intrinsic part.

As regards specific measures taken by Government to tackle vacancies, action 5.1 commits to the development of a national vacant housing reuse strategy, the publication of which is expected shortly. Action 5.9 commits to reviewing planning legislation to allow the change of use of vacant commercial units in urban areas, including vacant or under-utilised areas of ground floor premises, into residential units without having to go through the planning process. A multidisciplinary working group, led by the Department of Housing, Planning and Local Government, will be working to bring greater clarity to the regulatory requirements that apply and to advise both industry and local authorities on how best to facilitate the reuse or development of under-utilised older vacant buildings in the context of the regulatory requirements. At local authority level, it is considered that there is scope for some early actions and in August 2017, all local authorities were required to designate vacant home offices and to draw up vacant home action plans to identify the real scale of vacancy in their areas, to set an ambitious but realistic target for which vacant homes could ultimately be brought back into use, whether for private sale, rent or social housing purposes, and to engage with owners to this end. The first of these action plans were submitted to the Department of Housing, Planning and Local Government last week.

Other initiatives include the repair and leasing scheme; buy and renew scheme; and the Housing Agency acquisition fund. Many other approaches have been considered by Government in tackling vacancy issues. On the possibility of introducing a new vacant homes tax, a strong rationale would be needed. It would also need to be demonstrated how exactly such a tax would achieve and deliver the desired outcome. Proof would be needed as to how its public benefit would, for example, outweigh rights contained within the Constitution. The fairness and proportionality of such a tax would need to be carefully considered, as would necessary exemptions, lead-in times, collection and many other issues. Bearing in mind such complexities and the consequences of tax impositions, the Minister for Housing, Planning and Local Government sought legal advice from the Attorney General and that advice is currently under consideration. Consideration is also required as to the involvement and co-operation of the Department of Finance and the Revenue Commissioners, and the implementation costs.

As there are multiple aspects to a vacant homes tax, I therefore oppose this amendment, which commits to laying a report on the matter within six months.

Comments

No comments

Log in or join to post a public comment.